Chevron Case Study - 3960 Words

Case 1: Chevron October 24, 2011 Introduction of the Company Chevron began with the discovery of oil north of Los Angeles in 1879 and was originally named the Pacific Coast Oil Company. Later John D. Rockefeller’s Standard Oil bought Pacific Oil in 1900 to form Standard Oil (California). In 1911, the Sherman Antitrust Act would force the breakup of the parent Standard Oil and Chevron became Standard Oil of California or Socal. Socal would go on to form joint venture with Texaco in 1936 to form Caltex, to develop and market oil in the Middle East and Indonesia. It would then go on to form the Aramco partnership in the Middle East, which composed of Socal, Texaco, Exxon and Mobil but by 1980, Aramco was completely owned by the†¦show more content†¦Each play an important role in Chevron operations to ensure each area of operation is properly addressed and executed successfully. Financial Analysis Chevron is the second largest producer in the U.S. and one of the six largest producers of oil in the world. In 2009, Chevron reported Q3 earnings of $3.83 billion compared to the $7.89 billion reported in Q3 of 2008. Chevron had total revenue of $273 billion, its total cost and expenses were $37 and had a net income of $24 billion in 2008. For the first 9 months of 2009 earnings were $7.41 billion, down 61% from $19.04 billion in the first 9 months of 2008. Chevron’s net profit margin in 2008 was 8.8 percent, slightly lower than the industry average of 10 percent, its debt to equity ratio was only .10 less than the industry average of .25, making it easier for Chevron to borrow more if needed. In 2008 Chevron had a return on equity of 27.6 percent surpassing the industry average of 19 percent and a price per earnings ratio of 8.2 times. Chevron performed well when it came to management efficiency. Their income per employee was 372,758 outperforming the industry standard and SP and had $4 million in revenue per employee. They had an inventory turnover of 23.2 and an asset turnover of 1.2, again outperforming both the industry average and SP.Show MoreRelatedChevron Case Study1617 Words   |  7 PagesCase Study: Chevron Corporation (CVX) History The multinational Chevron Corporation dates back to its early beginnings in 1870 as Pacific Coast Oil Company. Following subsequent mergers, they eventually emerged as Standard Oil Company in 1911 after a forced divestiture into 34 independent companies by the U.S. Supreme Court under the Sherman Antitrust Act. It would later become Standard Oil Company of California (SoCal) after acquiring Pacific Oil Company in 1926. 10 years later, theRead MoreCompetitive Bidding and Acquisition: Chevron Case Study680 Words   |  3 PagesHowever, the most uncertainty that was faced from the Unocal organization before the deal was complete was who was going to buy the company. There were several interested parties including the Chinese CNOOC who actually offered a higher price than Chevron. If the Chinese national firm would have purchased Unocal there would have undoubtedly been many changes that would have occurred in the company internally. However, members of Congress actually passed certain legislative barriers which were craftedRead MoreThe Environmental Performance of Chevron in Terms of Fulfilling Social Needs Within Society and Stakeholders1706 Words   |  7 PagesWith annual revenue of US $19.02 billion, Chevron Corporation is the 16th largest integrated oil and gas energy company in the world. 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